HC Deb 26 March 1941 vol 370 cc579-81
42. Sir L. Lyle

asked the Secretary of State for War whether he is now in a position to make a statement about the negotiations which have been proceeding between the War Office and the insurance companies in regard to the premiums payable on life insurance policies by members of the Home Guard; and whether he can say what is the policy of the insurance companies in the matter of premiums payable by policy-holders who are members of the Naval, Military and Air Forces generally?

Mr. Law

As the answer is somewhat lengthy, I will, with my hon. Friend's permission, circulate a statement in the OFFICIAL REPORT.

Following is the statement: The position of members of the Naval, Military and Air Forces of the Crown holding policies of assurance on their lives, issued before the present war became imminent, has been under consideration. Many of these policies were issued free of all restrictions as to occupation or residence and in these cases, of course, no question arises of any restriction of benefits or payment of any extra premium. Some policies were issued, however, expressly excluding particular risks, for example, participation in Naval, Military or Air service without payment of additional premium or adjustment of benefits. However, for such policies, issued on the lives of civilians who have joined for service for the war only, the offices in general are as a concession at present paying benefits in full without requiring payment of extra premium. It is understood that they hope to continue this concession throughout the war. The concession does not necessarily apply to certain special types of policies, for example, assurances involving benefits of a temporary nature, contingent assurances, deferred assurances, or where a large sum is assured on an individual life. Nor does it apply in a few cases where, although the life assured was a civilian when the policy was affected, a special clause was included to cover exceptional circumstances.

Where a policy containing a war service clause provides that an extra premium will be quoted for the complete waiver of the clause the offices feel that if asked to do so they must quote such premium to give the assured a contractual right instead of the concession.

The special position of the Home Guard has been the subject of full discussion with the Life Offices' Association, the Associated Scottish Life Offices, the Industrial Life Offices' Association, the National Conference of Friendly Societies and the offices particularly concerned, and it has now been agreed that in the case of the Home Guard for all types of pre-war life policies which contain a war service clause consent will be given by offices to service in the United Kingdom in the Home Guard without requiring a policy-holder to pay an additional premium and without restriction of benefits, so long as the Home Guard remains as at present constituted as regards service in the United Kingdom and the service being voluntary and unpaid, the offices having the right to withdraw the concession after a reasonable period of public notice and alter prior consultation, as the case may require, with the War Office, the Board of Trade and the Industrial Assurance Commissioner, who is also the Chief Registrar of Friendly Societies. There is, in fact, no intention of changing the constitution of the Home Guard. It is understood that the offices intend if at all possible to continue this concession for the duration of the war although they cannot commit themselves to this, if circumstances should change materially.

This statement applies only to life assurance benefits and not to any accident benefits whether given by separate contracts or embodied in a life assurance contract.

Registered friendly societies affiliated to the National Conference of Friendly Societies are not excluding liability for any payments due at death in respect of members serving with the Forces, who joined those Societies prior to the outbreak of war. They also propose not to differentiate in their treatment of members serving with the Home Guard. In both cases it is hoped to continue these payments for the duration of the war, though here again the position will require to be reviewed if existing circumstances materially alter. No change will be made without notice being given to the Chief Registrar of Friendly Societies and to the War Office.